Correlation Between Hektas Ticaret and Ege Endustri
Can any of the company-specific risk be diversified away by investing in both Hektas Ticaret and Ege Endustri at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hektas Ticaret and Ege Endustri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hektas Ticaret TAS and Ege Endustri ve, you can compare the effects of market volatilities on Hektas Ticaret and Ege Endustri and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hektas Ticaret with a short position of Ege Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hektas Ticaret and Ege Endustri.
Diversification Opportunities for Hektas Ticaret and Ege Endustri
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hektas and Ege is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hektas Ticaret TAS and Ege Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Endustri ve and Hektas Ticaret is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hektas Ticaret TAS are associated (or correlated) with Ege Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Endustri ve has no effect on the direction of Hektas Ticaret i.e., Hektas Ticaret and Ege Endustri go up and down completely randomly.
Pair Corralation between Hektas Ticaret and Ege Endustri
Assuming the 90 days trading horizon Hektas Ticaret TAS is expected to generate 1.84 times more return on investment than Ege Endustri. However, Hektas Ticaret is 1.84 times more volatile than Ege Endustri ve. It trades about 0.04 of its potential returns per unit of risk. Ege Endustri ve is currently generating about -0.14 per unit of risk. If you would invest 372.00 in Hektas Ticaret TAS on October 24, 2024 and sell it today you would earn a total of 6.00 from holding Hektas Ticaret TAS or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hektas Ticaret TAS vs. Ege Endustri ve
Performance |
| Timeline |
| Hektas Ticaret TAS |
| Ege Endustri ve |
Hektas Ticaret and Ege Endustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hektas Ticaret and Ege Endustri
The main advantage of trading using opposite Hektas Ticaret and Ege Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hektas Ticaret position performs unexpectedly, Ege Endustri can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ege Endustri will offset losses from the drop in Ege Endustri's long position.| Hektas Ticaret vs. SASA Polyester Sanayi | Hektas Ticaret vs. Eregli Demir ve | Hektas Ticaret vs. Turkiye Sise ve | Hektas Ticaret vs. Ford Otomotiv Sanayi |
| Ege Endustri vs. Ford Otomotiv Sanayi | Ege Endustri vs. Tofas Turk Otomobil | Ege Endustri vs. Hektas Ticaret TAS | Ege Endustri vs. Eregli Demir ve |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |